Which One of the Following Statements Concerning Liquidity Is Correct

question 297

Multiple Choice

Which one of the following statements concerning liquidity is correct?

• A) If you can sell an asset in 18 months, it is a liquid asset.
• B) If you can sell an asset next year at a price equal to its actual value, the asset is highly liquid.
• C) Trademarks and patents are highly liquid.
• D) The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties.
• E) Statement of financial position accounts are listed in order of decreasing liquidity.

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